Buying a Franchise in Canada: Speak to Franchisees First

Before buying a franchise, speaking to people who already run one lets you compare the brand’s sales pitch with day-to-day reality. These conversations offer a practical insight into the franchise network you are considering joining. Their value, however, depends on your approach: speak to a range of people, ask comparable questions and check the answers rather than simply collecting glowing testimonials.

1. Build an independent list of contacts

Franchisees recommended by the franchisor are a starting point, but not necessarily a representative sample. Ask why these people were chosen and seek out other perspectives too: recently established operators, experienced owners, people operating in a market comparable to your intended location, and former franchisees.

In Canada, disclosure rules vary by province. In Ontario, the Arthur Wishart Act (Franchise Disclosure), 2000 requires, subject to applicable exceptions, a disclosure document to be provided at least 14 days before a franchise-related agreement is signed or a payment is made. This document includes information about current and former franchisees. Ask your solicitor to check which requirements apply to your transaction.

In Quebec, there is no franchise-specific legislation imposing the same disclosure regime. The general provisions of the Civil Code of Québec, particularly those concerning good faith and contracts, apply. Nevertheless, ask the franchisor for contact details so that you can carry out your checks.

Then put together a balanced list. An owner-operated outlet in a small town may be more relevant to your plans than a city outlet run by a multi-unit franchise owner. A refusal to provide contact details deserves an explanation, but is not, on its own, proof of a problem.

2. Prepare consistent, respectful interviews

Arrange appointments outside busy periods. Explain your plans, suggest a reasonable length for the conversation and make clear that the person can decline to answer any question. Do not ask for trade secrets or documents they are not authorised to share.

Use the same set of core questions for each interview, while leaving room for examples:

• What do you wish you had known before committing?
• Which tasks actually take up your working week?
• What surprised you most about running the business?
• When you recently faced a difficulty, how did your dealings with the franchisor go?
• Which costs or constraints had you underestimated?
• If you were starting again today, what additional checks would you make?

Ask about specific situations rather than requesting a satisfaction score. ‘Can you describe the last time you asked for help and the response you received?’ tells you more than simply asking, ‘Do you get good support?’

When speaking to a former franchisee, ask when they left the network and in what circumstances. Distinguish between a departure for personal reasons, a planned sale and an unsatisfactory experience. Respect any confidentiality obligations they may have: their silence does not establish that there was a dispute.

3. Distinguish between facts, opinions and context

After each interview, note the date, the outlet’s profile and the main points raised. Separate these into three categories: reported facts, personal assessments and matters still to be checked. Ask permission before recording a conversation or attributing a quotation.

A comment such as ‘the first few weeks were difficult’ is too general on its own. Find out what it means: recruitment, learning to use systems, personal organisation or a problem specific to the premises. Also check when the experience took place. An older account may relate to a different team or different practices.

Do not turn a handful of conversations into statistics about the entire brand. People willing to speak may have particular motivations, whether positive or negative. Their agreement, outlet format or local market may also differ from yours.

When several independent contacts raise the same issue, treat it as a priority for further checks, not a definitive conclusion. Equally, a single detailed account may justify a follow-up question.

4. Turn accounts into evidence-based decisions

Prepare a simple table with columns for the observation, context, document to consult, question for the franchisor and response received. This approach prevents a general impression from taking the place of analysis.

Present discrepancies to the franchisor factually, without unnecessarily revealing the identities of the people you interviewed. Ask what explains the difference and which provisions would apply to your outlet. Then refer financial matters to your accountant and contractual questions to your independent solicitor.

A franchisee’s statements do not, by themselves, create a commitment from the franchisor to you. A practice valued at one outlet is therefore not automatically a right under your agreement.

Key takeaway: before committing, speak to a range of franchisees, compare their answers and have significant discrepancies checked. The aim is not to find unanimous agreement, but to understand the realities you are accepting when you join the network.